BOSTON -- The Massachusetts Department of Transportation's board of directors unanimously approved on Wednesday a $566.6 million deal for up to 284 new Orange and Red Line subway cars that will be assembled at a new facility in Springfield.

The deal with Chinese manufacturing juggernaut CNR is projected to create at least 250 jobs at the yet to be built $60 million, 150,000-square-foot manufacturing facility that could be used in the future for other American subway car projects.

CNR's bid was nearly half that of the highest bid from Canada's Bombardier ($1.08 billion), while it edged out Kawasaki ($904.9 million) and Hyundai ($720.6 million.) A fifth bid from Chinese manufacturer CSR was deemed unacceptable during a review process and ultimately thrown out.

All of the cars should be delivered by 2023, according to MBTA projections.

The deal between CNR and the MBTA is unique because it is paid for entirely by state bonds and is not receiving any federal transportation grant money. The dearth of federal dollars going to the project allows the state to dictate a "Make it in Massachusetts" requirement, forcing bidders to assemble the cars in Massachusetts. The contract calls for more than 60 percent of the materials used to come from the United States and to give preferential treatment to minority and woman-owned businesses.

"This is a best value public procurement in which the award recommendation is based upon the overall results of both the technical and the price analysis with cost being important but only one of the many factors considered," said MBTA General Manager Beverly Scott.

The new cars will replace decades-old Orange and Red Line cars, some of which have been in service since 1969.

The new cars are part of a $1.3 billion effort to improve the Orange and Red Line. An additional $500 million will go to improving tracking, signaling and maintenance facilities.

The Chinese manufacturer will be required to submit quarterly reports to the MBTA during the manufacturing process.

The decision to award the contract to a state-owned Chinese company does not come without controversy. The Alliance for American Manufacturing as well as others that addressed the board on Wednesday were critical of the board's choice of CNR because of China's spotty human rights record.

MBTA officials said that they fully vetted the company and found no human rights violations at the company's factories in China, where approximately 10 percent of the components for the cars will be constructed.

"Our thorough investigation found no human rights violations on the part of CNR," said MBTA spokesperson Joe Pesaturo.

Pesaturo brushed off moral and ethical concerns about the decision to award a contract to a state-owned Chinese company and emphasized that CNR's low bid was beneficial for Massachusetts taxpayers.

"There was no vote today in support of China's government," said Pesaturo.